How do I get my name off of a loan for a property I no longer own?

Question

I have had a loan in my name since 1985, the partner I bought the property with told me he would get new financing, he never has. The property is now worth over $1,000,000 with a very small loan, my problem is he is always late on the payments and I get numerous calls from the lender that they are going to foreclose, but he makes current just before forclosure. He has ruined my credit, do I have any recourse, he is not on the loan. This person has been sued many times, with his partners ending up owning the property after all is said and done.

Answer 1

You own the property! Sell it & pay it off! You are on title to the property if you are on a secured loan for the property.

Answer 2

If you are no longer a partner with this individual and he bought you out with the understanding (Oral Agreement) that he would refinance the mortgage and have your name removed.

You should take him to court and sue him over this, stating that your credit is being ruined by his actions of not paying on time, thus causing your credit to be impaired.

One thing that might come up is that it has been since 1985 that this has been going on and you took no action in the ensuing years.  

The lender will not allow you to come off the mortgage because that would be a breach of the contract. Even sending the deeds indicating that you are no longer on the property does not negate the fact that legally you are still obligated for the mortgage

I hope this has been of some use to you,good luck.

"FIGHT ON"

Answer 3

talk to a lawyer if the property really has a value of a million with a low loan attached:

Who is on th title? not sure how the original loan issued could be Valid if you are sole liability on a place you have no title to

, something is not kosher in the facts so talk to a lawyer

Answer 4

File a law suit against him.  My mother and step dad gave their moble home AWAY to a family in need back in 1997 and for a few years the property taxes where paid.  The paper work was all filed properly, but after 1999, when this couple divorced, all h**l broke loose.  My mom did not get the notice in the mail until 5 years later (2007) that she owned this old moble home and it wasn't even there in the moble home park! Someone was paying the property taxes on that old moble home from 1999-2002, but we do not know who.

The owners that my parents gave the house to, left!  They divorced and left!  The propery taxes went unpaid for 5 years and the state of California does not even send out a notice of a missing payment (property taxes) until 5 YEARS down the road. We called the apprasor office and I emailed the lady. I had to dig on the County of Riverside website about property taxes.  

It did not take long for me to find out WHO I needed to speak with/email, but the entire process to clear this ***** up took about 2-3 MONTHS.  I kept on sending email after email to the lady that worked for the County of Riverside and she kept on calling other people trying to dig to find out WHO was paying the property taxes.  Finally, after 3 months we were called and told that they County of Riverside will remove my mother from the ownership list and she would not have to pay the property taxes on the house that she and my step-dad did NOT legally own, since they gave it away and they went down with the Collins in the city of Riverside to file the papers legally.    I guess someone in the County of Riverside  tryed to hide something from someone.  

Be careful when doing business transactions with people.  Get a contract that binds your partner to whatever it is that you want.  If you don't, you risk losing your business and your own property.

Answer 5

If you signed for the loan, you agreed to be responsible for the payments on same.  I gather that you somehow removed your ownership without requiring that the other owner refinance it in his name BEFORE you gave up ownership.

That being the case, you won't have your name removed UNTIL he refinances, and with his payment history, chances of that are slim to none.

Next time, consult an attorney before you make a stupid move like this.

Answer 6

Surely given the equity such a property must have attracted since '85, your financiers would realise they are now not exposed.  Surely a $1,000,000 property must be making around (at least 7-8%) return and surely you can make an arrangement to have this cash flow alleviate your servicing of the remaining debt.  Otherwise (under Australian law) negative gearing would make it attractive to re-finance and borrow interest only over say 5 years, thereby making all repayments deductable (interest component is fully deductable.)

If the property is in your name, why can't you sell and do other things with the capital appreciation.  

All of the above depend on whether you bought this property as "Joint Tenants" or "Tenants in Common".